Key points
- Before issuing a Section 148 notice, the officer must serve a show-cause notice under Section 148A with the information suggesting income has escaped assessment, and consider your reply.
- After the 2024 amendments, reopening is permitted within three years and three months of the end of the assessment year, or within five years and three months where escaped income is 50 lakh rupees or more.
- The Income-tax Act, 2025 replaces the 1961 Act for tax years from 1 April 2026, carrying the reassessment scheme forward with renumbered sections.
Step by step
- Check the notice
Confirm the assessment year, the officer's jurisdiction (faceless assessment applies to most cases), whether the notice was issued within the time limit, and whether prior approval of the specified authority is recorded. - Ask for the information
If the show-cause notice does not enclose the information and material relied on, ask for it in writing; the Supreme Court in Ashish Agarwal (2022) and High Courts since have required disclosure. - Reply on the portal within the time given
Address each item of alleged escapement with documents, explain the source of funds or the nature of the transaction, and point out where the information is factually wrong or already assessed. - Examine the order under Section 148A(3)
If the officer decides to proceed, the order must deal with your reply. A non-speaking order, or one based on information not put to you, is open to challenge. - Decide between reassessment and writ
Participate in the reassessment and appeal to CIT(A) if the addition is made, or file a writ petition in the Delhi High Court if the notice is without jurisdiction, time-barred, or the procedure was not followed.
The time limits
From 1 September 2024 the general limit is three years from the end of the relevant assessment year, extended to five years where the officer has books, documents or evidence showing escaped income of 50 lakh rupees or more. The show-cause notice must issue within three months before those limits. Notices for old years issued under the earlier ten-year regime were the subject of extensive litigation, settled by the Supreme Court in Rajeev Bansal (2024).
What counts as information
Information flagged by the risk management strategy, audit objections, information from other authorities and court orders. Mere change of opinion on facts already assessed is not a ground to reopen.
Frequently asked questions
Can I ignore a Section 148 notice if I think it is time-barred?
No. Reply on the portal raising the jurisdictional objection, and consider a writ. Ignoring the notice leads to a best-judgment reassessment.
Is a Section 148 notice possible for a year already scrutinised?
Yes, if new information suggests escapement, but not merely to revisit a view already taken on the same material.
Related practice area: Tax Advisory & Disputes
This article is for general information and does not constitute legal advice. Laws, rules and limitation periods change and depend on the facts; please take advice on your own situation before acting. Reading this article does not create a lawyer-client relationship with Akhtars Legalitarian.